The Predicament and Rebirth of Ethereum

Recently, Ethereum has seen many notable changes, such as Vitalik becoming very decisive about Layer 1 scalability, as well as restructuring and layoffs, presenting a more pragmatic approach to work. This episode invites Dr. Zhou, the founder of EthStorage, and researcher Lawrence to discuss Ethereum's current dilemmas, reform measures, and future prospects.

The Reasons Why Ethereum Underperformed BTC and SOL

1. The Layer 2 scaling route of Ethereum is inconsistent with its core values, leading to incentive incompatibility issues.

2. The project is progressing slowly, with each upgrade taking one to two years, making it less efficient compared to other public chains.

3. There are fewer new business models and innovations on the chain, and the level of business activity is not as high as in the previous bull market.

4. The extreme insistence on decentralization seems less necessary in the current policy environment.

Consensus and Discrepancies on Ethereum Issues

Consensus:

• The strategy that previously focused on Layer 2 needs to shift.
• The engineering efficiency is low and needs improvement.

Divergence:

• The limits of commitment to decentralization
• Should the multi-client route continue to be maintained

Ethereum's Reform Measures

1. Launch a clear L1 scaling roadmap, aiming to increase the Gas Limit from 30 million to 60 million.

2. Actively optimize client code, such as performance optimizations for Geth and Nethermind.

3. Organizational structure adjustment, adding two executive directors.

4. Conduct layoffs and cancel projects that do not directly address the scalability issue.

The Future Prospects of Ethereum

Experts hold a cautiously optimistic attitude towards Ethereum:

Advantages:

• A large developer community and network effect
• Financial applications are still primarily based on Ethereum.
• There may be performance improvements and cost reductions in the short term.

Hidden concerns:

• It remains to be seen whether the long-term route has truly changed.
• An overly idealistic and conservative attitude may limit development
• Can the decision-making level be more pragmatic and aggressive?

Investors can pay attention to:

• Vitalik's change of attitude
• Is Ethereum becoming more aggressive and willing to take risks?
• Improvement of community governance methods
• Interaction with regulatory agencies and various forces